US, Ukraine sign critical minerals deal after complex negotiations

ISTANBUL/WASHINGTON

The United States and Ukraine have signed a critical minerals deal following months of challenging negotiations, the US Treasury Department announced Wednesday.

"On April 30, the United States and Ukraine signed an agreement to establish the United States-Ukraine Reconstruction Investment Fund," the department said in a statement.

It said the economic partnership would allow the two countries to work collaboratively to accelerate Ukraine's economic recovery, highlighting Washington's "significant financial and material support" to Kyiv since the war with Russia began in 2022.

The Treasury Department and the US International Development Finance Corporation will work with the Ukrainian government to finalize program governance, according to the announcement.

Treasury Secretary Scott Bessent praised President Donald Trump's role in the agreement.

"Thanks to President Trump's tireless efforts to secure a lasting peace, I am glad to announce the signing of today's historic economic partnership agreement."

"Both the United States and the Government of Ukraine look forward to quickly operationalizing this historic economic partnership for both the Ukrainian and American people," the statement said.

Agreement ensures success for both countries: Ukrainian minister

Ukraine's Economy Minister Yulia Svyrydenko confirmed the signing of the agreement. In a post on Facebook, she thanked the leaders of the two countries and everyone who contributed to its realization.

"The document is one that can ensure success for both our countries - Ukraine and the United States," she said.

Under the agreement, a fund would be set up with the US to attract international investment, Svyrydenko said.

She said that Ukraine would retain ownership of all resources in Ukrainian territory and territorial waters and that Kyiv would decide what and where to extract.

The fund is being created on a 50/50 basis, which reflects an equal partnership between two states, according to Svyrydenko.

Svyrydenko also mentioned Trump’s push for Ukraine to pay its debt to the US, a key point in the talks. The agreement does not mention any debt obligations of Ukraine to the United States, she said, underlining that it will allow both countries to increase their economic potential through equal cooperation and investment.

Another key provision, Svyrydenko said, is that the fund will include only new licenses. Revenues from projects already launched or budgeted revenues are not included in the fund, she said.

‘We are talking about 50% of the funds from new licenses for projects in the field of critical materials and oil and gas that will go to the budget after the fund is created,” she said.

Under the agreement, Ukraine will transfer 50% of the revenues from new licenses to the fund. It will also be able to make additional contributions if deemed necessary, Svyrydenko added.

The US will also contribute to the fund. In addition to direct funds, they can also contribute to it by other types of assistance, such as providing air defense systems for Ukraine, she emphasized.

Svyrydenko said the fund would then be used to invest in projects to extract useful fossil fuels and oil and gas, as well as in related infrastructure or recycling projects to be jointly decided by the two countries.

She emphasized that the fund can only invest in Ukraine.

Svyrydenko said this version of the agreement is mutually beneficial for both countries.

She said the agreement demonstrates the US commitment to Ukraine's security, recovery, and reconstruction.